SUMMARY

QUESTION: Whether raw food kits that contain a mix of ingredients such as meats, sauces, spices, and pasta are subject to sales tax. The kits are assembled by the customer and packaged in re-sealable plastic bags or aluminum trays for further cooking by the customer. The raw food kits are not ready for immediate consumption.

ANSWER – Based on Facts Below: Section 212.08(1), F.S., exempts the sale of food products for human consumption. The exemption does not apply to food products cooked or prepared on the seller’s premises and sold for immediate consumption. Since the raw food kits are not sold for immediate consumption, but for further cooking by the customer away from the seller’s premises, they are exempt from sales tax.

April 24, 2007

Re:Technical Assistance Advisement 07A-012

Sales and Use Tax – Raw Food Kits

XXX(“Taxpayer”)

F.E.I. Number:XX

Section 212.08(1), Florida Statutes (F.S.)

Dear :

This response is in reply to your letter to the Department, dated November 28, 2006, in which you are requesting the Department's issuance of a Technical Assistance Advisement ("TAA") pursuant to s. 213.22, F.S., and Chapter 1211, F.A.C., regarding the referenced matter and parties. An examination of your petition has established that you have complied with the statutory and regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting your request for issuance of a TAA.

ISSUE

Whether raw food kits sold at Taxpayer’s retail store are subject to sales tax.

FACTS

As stated in your letter, the business is an “XXX” where all the raw ingredients for various recipes are available for customers to assemble into containers and take home to freeze and then cook at a later date. The food is not ready for immediate consumption.

LAW

As provided in Section 212.08(1), F.S., food products for human consumption are exempt from sales tax. The term “food products” includes edible commodities, whether processed, cooked, raw, canned, or in any other form, which are generally regarded as food. See Section 212.08(1)(b), F.S.

The exemption for food products does not apply to meals sold for consumption on or off the seller’s premises, to food cooked or prepared on or off the seller’s premises and sold for immediate consumption, or to food cooked, prepared, or sold in or by restaurants, lunch counters, cafeterias, hotels, taverns, or other like places of business. See Subparagraphs 212.08(1)(c)1., 9., and 13., F.S. These exclusions from the exemption do not apply to raw food kits. The food kits are not meals, and are not sold for immediate consumption. Although the businesses are required to be licensed with the Department of Business and Professional Regulation, Division of Hotels and Restaurants, they do not operate as a restaurant, lunch counter, cafeteria, or other like place of business, since they are not serving prepared meals.

CONCLUSION

It is our determination that the raw food kits are exempt from sales tax as a food product, as defined in Section 212.08(1)(b), F.S.

This response constitutes a Technical Assistance Advisement under s. 213.22, F.S. which is binding on the department only under facts and circumstances described in the request for this advice as specified in s. 213.22, F.S. Our response is predicated on those facts and the specific situation summarized above. You are advised that subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules upon which this advice is based may subject similar future transactions to a different treatment than expressed in this response.

You are further advised that this response, your request and related backup documents are public records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to protect confidentiality, we request you provide the undersigned with an edited copy of your request for Technical Assistance Advisement, the backup material and this response, deleting names, addresses and any other details which might lead to identification of the taxpayer. Your response should be received by the Department within 15 days of the date of this letter.

Sincerely,

Richard R. Parsons

Tax Law Specialist

Technical Assistance & Dispute Resolution

(850) 9224838

Ctrl. No. 27476